Correlation Between TFI International and ImpediMed
Can any of the company-specific risk be diversified away by investing in both TFI International and ImpediMed at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TFI International and ImpediMed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFI International and ImpediMed Limited, you can compare the effects of market volatilities on TFI International and ImpediMed and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in TFI International with a short position of ImpediMed. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and ImpediMed.
Diversification Opportunities for TFI International and ImpediMed
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between TFI and ImpediMed is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and ImpediMed Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImpediMed Limited and TFI International is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on TFI International are associated (or correlated) with ImpediMed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImpediMed Limited has no effect on the direction of TFI International i.e., TFI International and ImpediMed go up and down completely randomly.
Pair Corralation between TFI International and ImpediMed
Given the investment horizon of 90 days TFI International is expected to generate 10.52 times less return on investment than ImpediMed. But when comparing it to its historical volatility, TFI International is 11.47 times less risky than ImpediMed. It trades about 0.07 of its potential returns per unit of risk. ImpediMed Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7.60 in ImpediMed Limited on September 14, 2024 and sell it today you would lose (3.39) from holding ImpediMed Limited or give up 44.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
TFI International vs. ImpediMed Limited
Performance |
| Timeline |
| TFI International |
| ImpediMed Limited |
TFI International and ImpediMed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and ImpediMed
The main advantage of trading using opposite TFI International and ImpediMed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI International position performs unexpectedly, ImpediMed can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ImpediMed will offset losses from the drop in ImpediMed's long position.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| ImpediMed vs. Yuexiu Transport Infrastructure | ImpediMed vs. Rave Restaurant Group | ImpediMed vs. Cumulus Media Class | ImpediMed vs. TFI International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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